Calls for widespread cuts in water bills from regulator Ofwat hit the traditionally steady utilities sector.

The prospect of cuts of between 15% and 20% in April 2000 brought a shiver to investors in Thames Water, down 30p to £10.25, Severn Trent, down 45p to 975p, United Utilities, down 15p to 865p and Yorkshire Water, down 20p to 487.5p.

The FTSE 100 Index of leading shares took a drenching from depressed global markets, falling 12.6 points to 5281.3 in the early minutes of trading.

Little corporate news on the big-hitters left dealers to concentrate on second line stocks, where movers were many.

Rank jumped 15p to 241p as the City applauded the removal of chief executive Andrew Teare.

The gain came despite gloomy trading figures for the last three months.

Pilkington gained 2.5p to 66p after reporting interim profits up 8% at constant exchange rates.

Good progress had been made on restructuring at the company.

Hopes of a bid from shareholder Trevor Hemmings following yesterday's profits warning led shares in wallpaper group Vymura up 6p to 83.5p after its heavy previous falls.

Chemicals group Ellis & Everard jumped up 17.5p to 201p on press reports of a potential offer for the company.